Shares of Gigadevice (GIGADEVICE) (HKEX: 03986)

jumped more than 7% during the trading session. At the time of writing, the stock was up 5.13% to HK$747.5, with a turnover of HK$738 million.

The rally follows comments from SK Group Chairman Chey Tae-won on June 2nd, who stated that SK Hynix plans to double its wafer production capacity within five years. He indicated that the memory chip supply bottleneck could persist until 2030.

In a related development, memory manufacturer Kioxia has reported that hyperscale data centers are seeking to sign NAND supply contracts that extend through 2029 and beyond.

China Post Securities noted that the memory cycle is in an upward phase, with various segments of the niche memory market benefiting to different degrees. The firm anticipates that prices for niche DRAM will still have room to rise in 2026. Beyond 2027, as incremental capacity from major players in the niche DRAM market comes online, prices may enter a phase of high-level volatility. While a moderate correction from peak levels is possible, prices are expected to remain elevated.